TOPIC: theatre SALE prices?

Does anyone have actual sales comps (not asking prices) for theatres sold in the past year? I'd especially love to hear what smaller (approx. 2 screen) theatres or cinema pubs are going for in the New England area or other regions. Thanks.

I was hoping to generally find out what other theatres are selling for in order to help with my valuation of one I'm looking at. Stats include 2 screens, 8000 sq ft. total; 12 more years on the lease; 10 - 14 employees; serves pub styled, frozen food, beer, wine and soda; located on busy highway right beside a four way intersection (with stop lights). Place was started 8 yrs ago with all used (refurbed) equipment (including 2 refurbed Simplex projectors); seats 110 per theatre and there are 2 theatres...

I purchased a copy of the valuation book offered for sale on this site. It was very helpful in evaluating the value of theatres. As an owners site my one lament is that the board members here are less open about values than they could be. I've asked before about whther theatres can be generically priced as a multiple of sales or as a per screen average to no avail.
When purchasiing my first first run theatres having started out with a second run, I paid 175K per screen for a 3 plex and two singles. Next week I close on a 6 plex at 350k per screen. Both instances are at about 2x sales. Both instances are cookie cutter facilities that were in good repair and running.

Couple of other thoughts: comps are really tough to come by because theatres are just not sold often. Finding an appraiser is really tough. If there are any in your area of the country sold check with your county Register of Deeds office. They will have the real estate sale listed with prices. You have to manually look them up just like an appraiser would.

Theaters that you explained vary in price. From 75,000-550,000. They can be almost identical but it has to do with the area.
And they can charge what ever they feel it is worth.
Believe after looking at a few theaters when you look at the books there always in the red but the seller insists that the real estate alone is worth the price...True!
My searches in New England have found single screeners at 400,000 while twins usually run upwards to over 500,000.
A lot of times the theaters have 2-3 rentals along with it (Apartments, storefront, etc.)
I also found one in VT. A 3 screen with 3 rentals immaculate they wanted 1,000,000.00.
A running fixer up 2 screen theater can be bought as little as 100,000. But no one admits there theater is run down and needs to be fixed up. Those are fighting words.
While it may be worth that at this stage and the way the industry is it a tough sell.
And in my opinion you want a sale not a lease. A lease is a no win situation!

A lease is a cheaper way to get started, especially if you're unsure about the area, struggling to get financing, or suspect the building might have some major upgrades needed down the line.

If you can get $500k in financing and the building will cost you most of that (or all of it), you're going to be behind the eight ball from the outset - a slow season could see you struggling to make your loan payments.

In that case, it may well serve your interests to lease the building for a few years and then look to purchase once your business has found its footing and you know how much you're going to make every month.

In addition, there are plenty of people looking at the US property market and expecting a major downturn in the coming year. It might just save you $100k to wait a while, watch the market turn south, and strike when the time is right.

The problem with actual figures is that they will vary so much from town to town even in a small rural state like Maine. If it was a recent sale it is often private info and who wants to post it here for their friends and neighbors to see. I now of many close and not so close competitors who read here. I bought one 2 screen with no stand alone rentals and a operating video rental business in the lobby in 1994 for 200K. We put another 30K into it and then another 150K adding a 3rd screen. All worth it. Plus sold off the videos for 15K even better! So net 365K and glad of it. I would not sell for that in a 100 years today. On Theatre # 2 I entered a 10 year silly and too good lease for a murdered 2 screen, put 140K into it and then bought the building with full 2nd floor of office space for another 75K plus the acre parking lot for 75K so 290K plus some more.

All of them vary, and they are always in relation to population-screens-condition-etc. You have to be able to judge what the population can support to calculate the value of the theatre. I think to find the Prince you gotta kiss a few frogs.
Michael Hurley
Impresario